Tax Sale

DEFINITION of 'Tax Sale'

The sale of property that results when a taxpayer reaches a certain point of delinquency in his or her property tax payments. When this happens, the property owner has a right of redemption period. During this period, he or she has the opportunity to pay off the delinquent taxes in full and reclaim the property.

BREAKING DOWN 'Tax Sale'

There are a number of laws and requirements that must be followed in order for a tax sale to be valid. Adequate notice must be given to the taxpayer and the sale must also usually be open to the public, so that an adequate price is obtained for the property. In many cases, the amount received for the property must be at least equal to the total taxes that are owed.

RELATED TERMS
  1. Taxes

    An involuntary fee levied on corporations or individuals that ...
  2. Tax Roll

    A breakdown of all property within a given jurisdiction, such ...
  3. Property Tax Deduction

    State and local property taxes that are generally deductible ...
  4. Sale

    1) In general, a transaction between two parties where the buyer ...
  5. W-2 Form

    The W-2 form reports an employee's annual wages and the amount ...
  6. Sales Tax

    A consumption tax imposed by the government on the sale of goods ...
Related Articles
  1. Home & Auto

    Foreclosure Opens Doors For Real Estate Investors

    Learn how to spot hot properties that you can turn around for a profit.
  2. Home & Auto

    Attention Home Buyers! Why You Need A Lawyer

    Property transactions are complex and subject to specific state/local rules. A professional can simplify the process.
  3. Personal Finance

    Real Estate Speculation In College Towns

    Is this an investing option you should consider? Find out here.
  4. Taxes

    5 Tricks For Lowering Your Property Tax

    Find out what steps you can take to reduce your bill.
  5. Taxes

    Avoid Capital Gains Tax On Your Home Sale

    If you have property to sell and want to avoid capital gains tax, a Section 1031 exchange may be the answer.
  6. Credit & Loans

    Understanding The Mortgage Payment Structure

    We explain the calculation and payment process as well as the amortization schedule of home loans.
  7. Home & Auto

    Exploring Real Estate Investments

    Discover how owning properties can give you a roof over your head or a check in your pocket.
  8. Retirement

    When a 401(k) Hardship Withdrawal Makes Sense

    If you've exhausted all other avenues, there are ways to withdraw funds before age 59½ – sometimes without the 10% penalty that's usually due.
  9. Taxes

    What All the Candidates’ Tax Plans Are Missing

    The presidential candidates have starkly different tax-reform proposals – but none of them gets to the real problem of America's tax system.
  10. Taxes

    Can't Pay Your Taxes? What to Do Now

    Not enough cash on hand for your April tax bill? No need to panic. Here's what to do.
RELATED FAQS
  1. Are credit card rewards considered taxable income by the IRS?

    Learn about when the Internal Revenue Service considers the financial value of gifts received from credit card reward programs ... Read Answer >>
  2. How long do I need to keep income tax records?

    Learn how long you need to save your tax records to avoid getting hit by additional taxes and penalties if you are the target ... Read Answer >>
  3. What are the Best Ways to Lower My Taxable Income?

    Paying taxes is an unavoidable obligation each year, but individuals and business owners can take advantage of various strategies ... Read Answer >>
  4. Why Is Panama Considered a Tax Haven?

    Learn about the offshore tax haven of Panama, and discover the legal and tax structures that make Panama a premier Caribbean ... Read Answer >>
  5. Are 401(k) loans taxed?

    Generally, any money you borrow from a 401(k) account is tax exempt. This feature is one of the reasons that - for critical ... Read Answer >>
  6. How are life insurance proceeds taxed?

    Generally, life insurance death benefits that are paid out to a beneficiary in lump sum are not included as income to the ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center